Japan’s New Experiment: Bitcoin Mining Directly Powers Grid Efficiency and Resilience

Japan launches national Bitcoin mining pilot, using Canaan's hydro-cooled rigs to absorb surplus renewable energy and balance utility grid loads.

Japan launched its first state-linked Bitcoin mining project, deploying 4.5 megawatts of Canaan-made rigs to consume surplus renewable energy from a major regional utility. The system channels excess solar and wind power into mining instead of curtailing output, reducing waste and stabilizing grid loads.​

Flexible Mining Technology

Canaan's Avalon A1566HA machines adjust performance in real time—overclocking when power is plentiful, underclocking during demand spikes. The unnamed utility is government-owned; analysts link it to Tokyo Electric Power Company (TEPCO), which ran earlier pilots in Gunma and Tochigi.​

Policy and Global Context

Japan joins 11 nations backing Bitcoin mining with government or state-linked infrastructure, according to VanEck's Matthew Sigel. The move aligns with proposed reforms to classify cryptocurrencies as financial instruments and introduce a 20% flat tax on gains. Canaan plans similar grid-balancing mining systems across Asia, North America, and Europe by 2026. Facility launch expected late 2025.